Why So Many People Prefer Loans With No Credit Check

Thinking about taking a loan anytime soon? Most loans will feature a credit check near the start of the application process. There’s a growing amount of people now that look for loan options that bypass the dreaded credit test. Here, we’re going to cover some of the most important reasons that loans with no credit check are becoming increasingly attractive to so many borrowers.

Credit checks are bad news if you have a poor credit score

One of the main reasons for people to dodge the credit check is because they have a bad credit rating. Your rating lets banks and other loan providers know that your past experiences with borrowing haven’t gone so well. They see this as really strong evidence of your lack of ability to pay back what you owe, so they’ll more than likely refuse anyone that has a score below a certain point.

At Cigno Loans, we don’t assess people based on their credit history when they apply for our short-term loans. Your credit score only says so much and we believe even those with bad credit should be allowed a chance to prove themselves able to borrow successfully. The most important thing we look for is your main source of consistent income. As long as we can see that you can afford to pay what you owe us when your next payday comes in, we’ll be happy to make you a loan offer.

Having no credit checks saves time

Loans with no credit check are a whole heap faster than loans with full checks. That’s why applying for a personal loan from a bank takes so much time. They have so many more processes to deal with than we do. We can provide instant payout loans within 24 hours of your application being approved. In some cases, we’ve even had the money paid out within a few hours.

This kind of same-day speed is impossible if you insist on running credit checks. When money is an issue, time can be everything. We understand that when you have an urgent cost to settle right away, you can’t sit around waiting for the money to be paid to you a few weeks or days down the line. You need it as soon as possible. This is the main reason we’ve structured our process to enable lightning fast payouts direct to your bank account.

Saving is hard when you live on a limited budget. Ideally, everyone would have a safety fund to fall back on when things are tight. If you’re still working on building yours, and a huge emergency cost has turned up out of the blue, your options can be quite limited. Our fast short-term loans are designed to be there for you when you need just enough to get you to your next payment from work. We offer up to $500 for first time borrowers and our website allows you to apply for any amount you need below this level.

Refusal based on credit can sometimes hurt your score further

Have you ever tried to apply for a credit card and been rejected only to find that the failed application has actually driven your score down even lower? This is one of the most frustrating things about the credit check system. Not only can it be really hard to access the credit you need if your score is less than perfect, but being rejected can damage your rating even further.

You might have a stellar record in your bank account history, but still be struggling to access credit due to a low score. This is another reason why more and more people are dodging credit checks altogether. Sometimes it’s best to go for loans with no credit check than taking the risk of applying for one that’ll set your rating back even more if you’re not accepted.

There they are! These are the main advantages of seeking a loan that is based on your current income rather than your credit score. We hope you’ve found this review helpful and will be happy to help if you have any further questions about our loan application process. Feel free to get in touch or leave a comment below for more information.

Common Barriers To Loans With No Credit Check

When you’re looking for a loan with bad credit, there are certain things you need to be aware of so that you don’t apply to the wrong places, waste your time, and damage your credit rating even further. In this post, we’re taking a look at some of the most common factors that prevent borrowers actually achieving a loan with no credit check. Read through these so that you have an understanding of the right loan products to chase and give yourself the best chance of being approved first time.

We’ll start with:

Unsteady income

Because we don’t run credit checks, we need to be sure that you can afford the loan we’re giving you. To do this, we check your current income. If your current income isn’t high or consistent enough, we’ll be forced to offer you a lower amount or refuse your application entirely. This dynamic will work exactly the same way with any payday loan provider. You need to make sure you have recent bank statements that clearly show you’re earning a steady salary from work. Have this to hand when you apply along with your ID and you’ll have a great chance at being approved without delay.

Wanting the loan for the wrong reasons

Payday loans are for emergencies. They should never be used to buy things you don’t need or to have a good time. If you put down in your application that you want the money to get yourself a nice new wardrobe for the summer, your application will be delayed or refused. When you find yourself constantly struggling to make ends meet, saving on variable costs like bills and weekly shopping is one of the best ways to improve your situation. When a cost comes up that can’t be ignored and you don’t have the cash to cover it, that’s when a payday loan can be very handy. Need the money to buy a new TV or car? Then forget it. Tell us you need the funds to repair your boiler, buy food for the month or any other necessity and we’ll do our best to help. The fastest way to be refused a payday loan is to admit that you want the money for investments or gambling. You might have heard others brag about the money they’ve made using payday loans for seed money, but it’s just not what these loans are made for.

Not having ID that’s up to date

When’s the last time you checked whether your passport or driving licence is expired. If it’s been a while, you should double check before you start your loan search. All payday loan providers will ask for official government identification that’s in date and clearly shows your current address. If yours is expired, you’ll need to get it renewed before you can apply. At Cigno, we aim to process loans within 24 hours of your application. Many of our customers need instant cash paid out so that they can settle urgent costs as soon as possible. If there’s any reason your application cannot be completed, we’ll get back to you as soon as we can to let you know what’s holding us back.

Read more about no credit check loans here, or in our previous blog post: Why No Credit Check Loans are Your Solution to Unexpected Expenses

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat